See: Value.
What changed? Whatever the market was willing to pay for it. Why did the market's opinion change? Was the neighborhood gentrified, so the finest crack dealer house in the city suddenly became Yuppytown? Or was the asbestos in the roof actually removed this time, and by being generally carcinogen-free, the home added $50k in value?
Some fundamental force likely happened (not just a more competitive market, or inflation) to make the value of whatever's being sold...change.
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Finance: What Is a Real Return?67 Views
finance- a la shmoop. what is a real return? like is there a fake return? you
know like the news? well kinda .real return refers to an [man frowns talking to camera]
investment return mapped against inflation. so let's say you invest in a
bond that pays five percent a year for ten years and then pays you back your
principal .boring but nice- you know like a good doctor visit. your nominal return
over that period was 5% but since inflation was 3% a year during that
period on average your real return was only 2% a year- meaning that the
performance of your investment only eked out a 2% net gain against the price of [equation]
milk gas and you know knocked off iPhones. so don't be a chump who thinks
that they're making more money than they really are, and you know keep on keeping
it real. [man sitting in chair, talks to camera]
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Price deflation is when pricing declines relative to past indices; monetary deflation is when the supply of money declines.